FinTech Industry & Regulation – Page 5 – FinTech and Blockchain Law Watch

CFTC Ordered to Serve Former Founders in Ooki DAO Case

Dec 20 2022

By Andrew M. Hinkes, Clifford C. Histed, Carly E. Howard, Cheryl L. Isaac, Maxwell J. Black

Following the unprecedented Ooki DAO enforcement action by the Commodity Futures Trading Commission (“CFTC”), the district court, after entertaining argument by several amici, clarified its position on another novel legal issue in the DeFi space: how to serve process on a DAO. On 12 December 2022, the United States District Court for the Northern District of California ordered the CFTC, as part of its efforts to serve the OOKI Dao, to personally serve the former founders of Ooki DAO as individually identifiable token holders.

California Legislators Continue To Assess How To Regulate Digital Assets

Aug 30 2022

By Jeremy McLaughlin and Josh Durham

For the fifth time since June 2022, California Senators have amended their proposed “Digital Financial Assets Law,” signaling a genuine desire to pass the bill as the Senate inches toward workable legislation.

Federal Reserve Doubles Down on Oversight of Crypto Activities for Banks

Aug 18 2022

By Grant F. Butler, Jeremy McLaughlin, Anthony R.G. Nolan, and Judie Rinearson

The Federal Reserve Board (the “FRB”) issued Supervision and Regulation Letter 22-6 (“SR 22-6”), providing guidance for FRB-supervised banking organizations (referred to collectively herein as “FRB banks”) seeking to engage in activities related to cryptocurrency and other digital assets. The letter states that prior to engaging in crypto-asset-related activities, such FRB banks must ensure that their activities are “legally permissible” and determine whether any regulatory filings are required. SR 22-6 further states that FRB banks should notify the FRB prior to engaging in crypto-asset-related activities. Any FRB bank that is already engaged in crypto-asset-related activities should notify the FRB promptly regarding the engagement in such activities, if it has not already done so. The FRB also encourages state member banks to contact state regulators before engaging in any crypto-asset-related activity.

CFPB Issues Advisory Opinion Strictly Interpreting Permissible Purpose for Consumer Reports

Jul 22 2022

By Grant F. Butler

On July 12, 2022, the Consumer Financial Protection Bureau (“CFPB”) issued an advisory opinion that states its strict interpretation of the permissible purposes for which a consumer reporting agency may provide a consumer report and for which consumer report users may obtain consumer reports. Section 604(a) of the Fair Credit Reporting Act (“FCRA”) identifies the “permissible purposes” for which a consumer reporting agency may furnish a consumer report.

Cryptocurrency Market Downturn and Australian Regulation Update

Jul 15 2022

By Daniel Knight and Kithmin Ranamukhaarachchi

In the wake of the drawn out cryptocurrency market downturn, increased regulation of the sector seems inevitable. With nearly one million Australians transacting in cryptocurrencies last year, there have been widespread calls to enact additional protections for retail investors.

Forthcoming New York Law Expands Protections For Credit Card Reward Points

Jul 14 2022

By Jeremy M. McLaughlin and Joshua Durham

Last year, on December 10, 2021, New York governor Kathy Hochul signed into law Senate Bill S133B, which is set to take effect on December 10, 2022. Among other things, it provides a 90-day grace period for the use of credit card reward points before an account is modified, cancelled, closed, or terminated.

Let Me In: Wyoming Special Purpose Bank Sues Fed for Access to Payments System

Jun 10 2022

By Grant F. Butler, Andrew M. Hinkes, and Robert M. Tammero, Jr.

Custodia Bank (“Custodia”) filed a complaint against the Federal Reserve Board (“FRB”) and the Federal Reserve Bank of Kansas City (“FRBKC”) in Wyoming federal court alleging that the FRB and FRBKC are unlawfully refusing to act on Custodia’s application for a master account. A Federal Reserve master account allows banks to directly access the Federal Reserve and utilize the Federal Reserve System’s payment, clearing and settlement services.

10 Impactful Provisions of the Lummis-Gillibrand Bill

Jun 07 2022

By Andrew Hinkes, Eden Rohrer, and Judie Rinearson

The “Lummis-Gillibrand Responsible Financial Innovation Act,” announced this morning, lays out a bold agenda for legal reform across multiple regulatory regimes aimed at clarifying legal requirements for regulated entities to issue, trade, and provide services related to certain digital assets. Although a point by point summary of the 69 page bill is beyond the scope of this post, here’s a brief summary of 10 impactful provisions from the Bill:

California Soliciting Comments on Potential Regulation of Crypto Products and Services

Jun 02 2022

By Jeremy McLaughlin and Christian A. Zazzali

On May 4, 2022, California Governor Gavin Newsom issued an executive order on digital assets, which seeks sensible, transparent regulation through engagement with developers of digital asset-related products and services. For a detailed discussion on the executive order, see our prior blog here. In response, California’s financial regulator, the Department of Financial Protection and Innovation (DFPI), issued an invitation to submit comments on crypto-asset related products and services under the California Consumer Financial Protection Law (CCFPL). The deadline for submission is August 5, 2022.

UK Payments Landscape Review

Nov 19 2021

By Kai Zhang

In July 2020, HM Treasury published a “Payments Landscape Review: Call for Evidence” for a strategic review of the UK payments sector. Following feedback from the industry, HM Treasury published its Response to the Call for Evidence in October 2021 which sets out a number of initiatives to ensure the payment sector stays at the “forefront” of technology and innovation.

Category:FinTech Industry & Regulation